Bitcoin Cash (BCH)
Officially launched on August 1st, 2017, Bitcoin Cash is a Bitcoin hard fork. A fork is an alternative version of an original cryptocurrency. When users of one cryptocurrency disagree with the rules of the crypto’s network, it might result in a split into two coins. That split is called a hard fork. For instance, if some users of a network realize that there is a flaw in the way the system runs, they can propose a solution on how to fix it. However, other members of the network may oppose them. Therefore, if the alternative is not supported by 100% of the users, a split will occur, and a new coin will emerge.
Bitcoin Cash was introduced to resolve the problem of scalability on the Bitcoin network. On average, it takes 10 minutes for transactions to be confirmed on the Bitcoin blockchain. It means that when you want to send bitcoins to someone, it will take about 10 minutes for your transaction to be verified and approved. Once approved, transaction data are recorded on a block and added to a blockchain, and so on. Besides, adding a block to the Bitcoin blockchain requires storage space, and the maximum cap for each block is 1MB. One block averagely contains 2700 transactions, which means that the blockchain executes less than ten transactions per second — comparatively, the Visa process about 24000 transactions per second.